Telia Company sells Yoigo stake to Grupo MASMOVIL

21 Jun 2016

Sweden’s Telia Company has confirmed an agreement to divest its 76.6% stake in Spanish mobile network operator Yoigo to Grupo MASMOVIL, saying the decision is in line with its strategy ‘to increase focus on operations in the Nordics and Baltics’. With the deal subject to approval from the Spanish competition authorities, Telia Company has said it expects it to close during the third quarter of 2016.

Telia Company revealed that the transaction price is based on an enterprise value for Yoigo of EUR625 million (USD708 million), meaning the Swedish outfit’s shareholding corresponds to a value of around EUR479 million. Telia Company has said it expects the stake divestment to generate a capital gain of more than SEK4 billion (USD485 million) and, following debt adjustments, the transaction is expected to reduce net debt for Telia Company by approximately SEK6 billion. Meanwhile, as part of the transaction, Yoigo’s existing minority owners ACS (17.0%), FCC (3.4%) and Abengoa (3.0%) will ‘continue to have exposure to the combined entity’. It has also been noted that Telia Company and the minority shareholders are entitled to a break-up fee of EUR30 million should the transaction not be completed.

Commenting on the matter, Telia Company president and CEO Johan Dennelind was cited as saying: ‘The divestment of Yoigo is an important milestone in our ambition to increase focus on our operations in the Nordics and Baltics. I am happy that we have an agreement with MASMOVIL, who will be able to leverage a small but great and agile team into a combined unit, creating an even stronger challenger in the Spanish market.’

Spain, Grupo MASMOVIL (incl. Yoigo), Telia Company, Xfera Moviles (Yoigo), Zegona